Cash and business

In Africa’s value system, money takes the sixth position after capacity (knowledge), integrity, valour, visible means of livelihood and honour.

However, in business, money or cash ranks as number one in measuring and guaranteeing value. The Cash Conversion Cycle Concept says the success of a business person or entrepreneur is determined by how effective he is in converting products or services to cash. The concept also measures the time it takes an organization to convert inventory to cash.

Jeff Bezos, founder of the over $1 trillion (over one trillion dollars) largest online retail business in the world, Amazon.com, pointed out that “no matter how big competitors are and how challenging or complicated the drama in business may be, competitors will not give you cash.” He said, “I focus, double down, delight and satisfy customers because they are the ones that will give you money.”

A basic and most fundamental concept of economics is that benefit drives decision-making. Also, the Double Keystone Model in business are: profit and credibility. We all know that these two are dependent on patronage by customers.

The customer determines value. The customer pays a premium for the value and the customer determines cost differences.

Now, let us take a deep dive.

Kenichi Ohmae, American-Japanese strategist, said “In the construction of any business strategy, three main players are responsible for superior performance, productivity and profitability. Each of these strategic 3Cs – company, competition and consumer, is a living entity with its own interests and objectives.” But the factor that is absolutely necessary, the requisite, is lasting relationship with customers in segmented markets.

Superior customer service is today’s game changer for the purpose-driven business. Delivering highest quality experience to customers must be done scientifically. That is, through a fact-based methodology.

For your relationship with customers to thrive and be deep enough, “You must think human, instead of the customer”. There must be more relationship than transactions. The expertise and mindset of every employee in the organization must be “customer centricity”.

Our business case is that experience is defined by the way it makes us feel and our emotions have a strong influence in driving our behaviour. Therefore, commercial benefits will definitely flow or be derived from the way the organisation influences customer behaviour. The onus is therefore on us to assiduously work for and evoke deep emotions that drive positive customer behaviour. Two parties will benefit from this: the customer and definitely, the business.

Do you know that in Bezos’ Amazon, there is the empty “Customer chair” at every executive and board meeting? The chair represents the CUSTOMER and his eminent position in the protocol.

Today we are witnessing evolutionary phases or shifts in the way organisations act in the interest of customers. We must ask ourselves where we sit in this customer journey. Are you intentional or progressively differentiating your organisation by way of delivering unique and highly satisfying services to customers? Is your experience so beneficial that the word-of-mouth about your differentiating services to customers are delivering very effective results that are even better than the entire marketing efforts?

In Mutual Benefits Assurance Plc, we have our Customer Experience team that is fast evolving. Operating under a department, it is cross functional and leads in the execution of the shared vision. This is part of our consistent strategy to keep designing and building the link between customer experience and Mutual’s business purpose.

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Let us look at the Customer Experience framework courtesy Veronika Luxemburg, world renowned Customer Quality Experience (CQX) strategist and expert.

Strategy: You must clearly define the Customer Experience strategy. Know your customers and have clarity as well as understanding on what they need from you.

Every employee must have a grasp of the role each must play in the desired customer experience outcome. Take a cue from “immortal” Steve Jobs, when he founded Apple, an organisation that is now one of the most valuable companies in the world. He said “You must start with the customer and then walk backward to technology.”

How are you linking up your business processes to your customer journey? It is your customer journey that will bring your business processes to life. The organisation must have a realistic view of this all-important customer journey.

Measurement: Measure the Customer Journey from the customer’s perspective. Carefully determine primary customer-focused priorities and constantly improve them.

People: You cannot do or achieve anything without people. Company’s culture and work environment must be conducive enough to “birth” ideas and actions on superior customer experience. The degree of every employee’s involvement must be so high that everybody becomes an ambassador of your CQX (customer quality experience).

Our people must know and work daily with the business and customer experience strategies. The “intimate” involvement of the people is for the benefit of the organisation because they are the closest to the customers. They know how to walk in their shoes. They must take to heart that superior customer experience is inflow by way of cash. It is the reason why the business exists. CQX is the umbrella over the entire organisation.

In this new world of “work” and in order to achieve the cash-outcome, adaptability to CQX must be our watchword. Leaders must change by adapting their perspectives. They must be proactive and make things happen. Position yourself and your organisation in the right place. There must be no barriers to the growth and profitability mindset. Bond with customers and fully appreciate their emotional insight and give to them products and services that deliver emotional benefits.